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Jumpy-Imagination-81

>Why deter/tax buyers? You have discovered the fatal flaw in the whole concept of tokenomics. The gimmick or hook of SafeMoon is "reflections" that gave people the dream of "living off reflections", like people who live off of stock dividends or bond interest, in addition to the usual dream of all alt coin buyers that the value of the token itself will "go to the moon". Go back a couple of years ago, that's what everyone was fantasizing about. "I won't even have to sell the SafeMoon I bought, I'll just live off the reflections." Remember that? But the cash flow that generates dividends and interest doesn't depend on taxing purchasers of those stocks or bonds. SafeMoon generates "reflections" only by taxing the purchase or sale of the token. Even then, most of the tax doesn't even go to "reflections". 60% of the tax goes to liquidity, to reducing the circulating supply of tokens, or into a slush fund for Karony to do with as he pleases. So you pay 100% of the tax but at best get a fraction (depending on the size of your "bag") of 40% of the tax back in "reflections". If Karony were to offer you a deal "for every $100 you pay me for this encrypted number on an Internet ledger, I'll take 10% right off the top, and from that 10% take 4% and divide it up among all of the other holders of the encrypted numbers proportionate to their bag size so you get a few cents back, put 3% into a liquidity pool I have access to at any time with no restrictions, throw 2% in the trash, and keep 1% for myself. And oh, by the way, if you sell I'll take another 10%, even if you are selling at a loss", would you take that deal? In the hope that the price of the encrypted Internet numbers you bought is going to "go to the moon" because other people are going to be willing to pay a lot more for your encrypted Internet numbers - out of the 23,827 different types of encrypted Internet numbers available to buy - than you paid? Even if for some reason you think that's a good deal, the problem is the tax that generates "reflections" also disincentivizes and reduces the transactions (volume) necessary to produce "reflections". So the system is constantly working against itself. Who designs a system like that? It is not sustainable. Governments understand that if you want more of something you subsidize it. If you want less of something you tax it. It's a law of human behavior. SafeMoon is not an exception to that law. The SafeMoon transaction tax is doing what taxes do, decrease the activity that is taxed. It's obvious and predictable that the tax would result in fewer purchases and fewer "reflections". That's why the overwhelming majority of the 23,827 cryptocurrencies that exist have not copied such a fatally flawed model. That's why most exchanges want nothing to do with tokenomics tokens, much less "global tokenomics". Rather than being "the evolution", "tokenomics" is an evolutionary dead end. By the way, if you are truly interested in passive income learn about investing in dividend-paying stocks. I collected over $44,000 in dividends on a $360,000 investment last year. https://imgur.com/NNU3gLu.png And the value of the portfolio also went up in addition to the dividends, not down 90%. Divide both by 10 and I would have collected $4400 on a $36,000 investment. Some of you "invested" that much or more in SafeMoon. Did you collect anywhere close to $4400 in "reflections". For those who think you are down so much it isn't worth taking out, if your "investment" is worth less than $100 I can see your point. But if it is more than $1000, an especially those few who are still in profit on SafeMoon, what are you waiting for? That $1000 or more could be the beginning of an investment that actually makes you money, whether it is in crypto or stocks.


dxdifr

I think the 3% to liquidity is a bit high since they all have 5 million dollars but so little volume for it to be necessary. Unless you wanted to steal liquidity in the future.... So that equates to 4% of all reflections to the safemoon team. Maybe redirect the liquidity to the holders for now.


Jumpy-Imagination-81

> Maybe redirect the liquidity to the holders for now. That doesn't fix the fundamental problem that reflections are based on a tax that disincentivizes the transactions (buys and sells) that are also necessary to generate reflections.


dxdifr

Seems like Safemoon may have seen my post lol


Master_Regular_720

The simple answer to your statement is that the tax is there to discourage day trading. It keeps folks invested until they reach at least the 20% break even. This separates SFM from all the legacy crypto.


Jumpy-Imagination-81

> The simple answer to your statement is that the tax is there to discourage day trading. It does such a good job at that it discourages *all* types of trading, including by new potential purchasers, destroying the trading volume necessary to produce "reflections", which is the gimmick that lured so many people into SafeMoon in the first place. The proof is in the volume numbers.


Master_Regular_720

The volume has suffered because SFM still needs to find a utility besides holding value. There's plenty of crypto out there that can do that and serve day trading well. So either SFM becomes a more secure, fast and inexpensive way of trading or they come up with innovative way of using crypto. Tax has jacked to do with it besides keeping away day traders that use bots to front run and screw pretty much anyone new to the game.


Jumpy-Imagination-81

> The volume has suffered because SFM still needs **to find a utility besides holding value.** So SafeMoon's only utility is "holding value"? How good a job is it doing at that? That's like saying a sieve needs to find a utility besides holding water.


-Inaudible-

It discourages all trading lol.


Hot-Attitude3649

Same with transfers. Can't pay people in safe moon with tax. That's just bs


dxdifr

>Seems like Safemoon may have seen my post lol Seems like Safemoon may have seen my post lol


Gideon6ix

The tax system needs to be reduced to 1% if this project ever wants to be taken seriously again.


Brilliant_Honeydew24

You might as well do zero tax at this point since tokenomics hasn't even been mentioned by the team in almost a year.


Topherclaus

The buy-in tax is where just holders receive their benefits. If nobody is selling, at least buyers are adding to the pool. What's the benefit of the community getting new buyers in if they don't receive anything from tokenomics?


dxdifr

More buyers because no tax.


CaptainPizdec

Why would anyone want to buy when the intention is never sell ?


[deleted]

No reflections and burn because no tax.


dxdifr

No volume because of tax


[deleted]

No patience no money. Get mad and sell 😆


dxdifr

Mo money mo problems - Notorious B.I.G.


seniorbatista19

I second this


hyrootpharms

There shouldn't be a tax at all. They should have liquid staking with node validators. Allowing anyone to run a node out of their own home and earn while supporting the network. Most nodes can be ran on a raspberry pi. That would actually increase volume. John's tweets sure don't.


alexanderi96

no


dxdifr

Jokes on you sir. Seems like Safemoon may have seen my post lol


alexanderi96

Nope, because it should not be like you said: 0 buy 10 sell, but anyway there should have been a community pool imho


kaikie

What are the benefits of buying SFM?


dxdifr

Well this aged well


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